GMAC Mortgage Branch Loss Hurts Fourth Quarter Profit Hopes

Detroit–Loan provider GMAC said it posted a loss of $724 million for the fourth quarter of 2007, mostly due to its troubled home mortgage division, the Guardian reported Tuesday.In the fourth quarter in 2006, Detroit-based GMAC, a former unit of General Motors, saw a profit of more than $1 billion.The company’s home loan division, Residential Capital, lost $921 million in the quarter–its fifth consecutive quarterly loss. GMAC has reduced risky lending and cut 5,000 jobs and said it may sell all or part of the division.Citing “continued disruption in the mortgage, housing and capital markets,” GMAC saw a net loss of $2.33 billion for the year, compared with a 2006 net income of more than $2.1 billion.